Economy
Dangote refinery to finally begin operation in December, targets 350,000 barrels per day
The Chairman of Dangote Group, Aliko Dangote has confirmed the commencement of operation at his multi-billion dollar Dangote Refinery in Lagos.
The Africa’s richest man disclosed this to the Financial Times (FT) in a November 25, 2023, interview.
According to Dangote, the long-awaited refinery is starting with 350,000 barrels a day, He also confirmed that a deal had already been clinched for the first cargo of about 6 million barrels of crude for delivery in December 2023.
“We are starting with 350,000 barrels a day. I don’t know whether other people can face our challenges and even survive. It is either we sink or we sail through. And we thank the Almighty that we have arrived at the destination,” he said.
Recall that the Nigerian National Petroleum Company Limited (NNPCL) on Novmeber 2, 2023 said it will supply 6 million barrels of crude oil totalling 200,000 barrels of oil per day to the Dangote refinery next month as part of a one-year supply agreement.
In his interview with the Financial Times, Dangote shared that he held a strong belief in the refinery’s capability to achieve its maximum output of 650,000 barrels per day by the end of 2024.
Emphasizing that the company had successfully resolved all challenges related to crude oil supply, he disclosed plans for the Dangote refinery to eventually become an independent entity listed on the Lagos Stock Exchange.
Expanding on the refinery project, Dangote expressed that this kind of project won’t emerge in Nigeria within the next twenty years.
He also said the company did not cut corners or seek applause, but the project was done for the sake of posterity.
During the FT interview, Dangote dismissed the idea that the Nigerian National Petroleum Corporation (NNPC) was pushing for a larger stake in the refinery project. He mentioned that once fully operational, the refinery is estimated to generate a substantial annual revenue of $25 billion. Dangote expressed confidence that NNPC is content with the shares already allocated to them in the project.
Former President Muhammadu Buhari commissioned the 650,000 barrels per day capacity refinery at the Lekki free trade zone area of the commercial hub Lagos on May 22, 2023.
The $20 billion giant refinery is aimed to produce up to 53 million liters of gasoline per day, as well as 4 million liters of diesel and 2 million liters of aviation jet fuel daily.
The refinery was earlier announced to begin operation in July 2023, but not a single drop of refined petroleum from the company has hit the market yet.
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